The recent increase in bitcBitcoin Newsoin prices has made JP Morgan predict that the crypto asset will be able to penetrate USD 146 thousand.
JP Morgan analysts explained that crypto asset prices could reach that level if volatility eases and institutional investors start investing more in gold.
As reported by Bitcoin.com, Monday (11/8/2021) JP Morgan released the inaugural report of his new publication last week.
The focus of the report is on the prospects for alternative investments, including digital assets. A new report is expected to be released every two to three months.
The company’s analyst, Nikolaos Panigirtzoglou has estimated the bitcoin price to reach USD 146,000 in the long term and a short-term target of USD 73,000 in 2022.
“Digital assets are on a multi-year structural rise, but the current entry point looks unattractive in our opinion for the 12-month investment horizon as bitcoin appears to have returned to overbought territory,” he said.
JP Morgan analysts added that the emergence of inflation concerns among investors in October 2021 renewed interest in the use of bitcoin as an inflation hedge.
Panigirtzoglou expects that bitcoin’s competition with gold will continue, especially because many millennials are investing.
“Considering how much financial investment into gold is, any crowding out of gold as an ‘alternative’ currency implies huge gains for bitcoin in the long run,” he said.
JP Morgan analysts said the price prediction of USD 146,000 would come true. However, the volatility of bitcoin should drop significantly, so that rule-bound investors feel comfortable adding cryptocurrencies or crypto assets to their portfolios.
Bitcoin Volatility
He noted the current volatility of BTC is about four to five times higher than that of gold. The report adds that current volatility is a problem as the fair price of bitcoin is $35,000.
“There is little doubt that cryptocurrencies and digital assets more broadly are emerging asset classes and thus on a multi-year structural uptrend,” said JP Morgan analysts.
Digital assets have emerged victorious post-pandemic. Many retail investors join institutional investors such as family offices, hedge funds, including insurance companies in spreading the asset class.